Accrual basis net income problem

Assignment Help Accounting Basics
Reference no: EM13159125

Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,000 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. Pat's accrual basis net income would be:

A. $18,000.

B. $34,000.

C. $23,000.

D. $29,00

Reference no: EM13159125

Questions Cloud

Assumptions of differing cultural groups in united states : Communication Patterns and Assumptions of Differing Cultural Groups in the United States" and examine their patterns and assumptions in relation to one another. What common elements can you find? In what ways do cultural differences impact verbal ..
Explain your rationale and support it with specific example : Consider the types of non-tariff trade barriers and determine which has the most detrimental effect on the U.S. economy from the standpoint of the domestic consumer. Explain your rationale and support it with specific examples.
How does the firm you selected acquire market power : Pick a firm in the fashion/retail industry. In your opinion, how does the firm you selected acquire market power? What impact do barriers to entry have on the firm's market power?
Coordination between functional areas of the firm : What are the ways in which a marketing audit can help improve coordination between functional areas of the firm? How can a marketing audit be used to make adjustments to a marketing plan?
Accrual basis net income problem : During this past year Pat's collected $42,000 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. Pat's ac..
What are the components of a dna nucleotide : What are the components of a DNA nucleotide? Why was it that knowing the composition of DNA led most scientists to the mistaken belief that DNA could not be the genetic material?
Proceeds at a certain temperature until the partial pressure : Proceeds at a certain temperature until the partial pressures of H2O, H2, and O2 reach 0.0800 atm, 0.00500 atm, and 0.00200 atm respectively.
Describe the interrelationship : Describe the interrelationship between at least two different body systems studied in A&P I and how they maintain homeostasis.
What is leaky replacement : Compare and contrast the Out of Africa (replacement) hypothesis of modern human origins with the Multiregional (continuity) hypothesis. Describe the main points of each as presented in the textbook.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Tax basis hurdle for deductibility

How much of the $25,000 ordinary loss allocated to Parker clears the tax basis hurdle for deductibility in 2010? What is Parker's stock and debt basis at the end of 2010?

  Determine the amount of payroll cost

A review of the accounting records of Rayford Manufacturing indicated that the company incurred the following payroll costs during the month of August.

  Direct labor cost on the job

Sweet Company applies overhead to jobs on the basis of 125% of direct labor cost. If job 107 shows $10,000 of manufacturing overhead apllied, how much was the direct labor cost on the job?

  Main reason for the unfavorable total budget variance

What is the main reason for the unfavorable total budget variance?

  Product cost cross subsidization basics

Product-cost cross- subsidization is less likely to occur when: a) a single cost pool is used b) little effort is mae to trace cost objects c) a peanut butter approach is used to allocate overhead d) none of the above

  Risk free real rate of return

You read in the wall street journal that 30 day US treasury bills are currently yielding 8%. your brother in law, a broker, a broker at Kyoto Securities, has given you the following estimates of current interest rate premiums:

  Determining share of pre-bonus income

Cole is to receive a bonus of 20% of net income (after the bonus) and that the remaining net income is to be divided equally. If the partnership income before the bonus for Year 2006 is $57,600, Cole's share of the pre-bonus income is?

  Earthquake damage costs in income statement

Prepare a short memo from giving your recommendations as to the proper reporting of the earthquake damage costs in the income statement for the year ending august 4, 1990.

  Straight-line depreciation concept

Prepare the appropriate entries for Winn Heat Transfer from the inception of the lease through the end of 2011. Winn's fiscal year is the calendar year. Winn uses straight-line depreciation.

  Compute depreciation and cash flow

Ohare Company's only asset as of January 1, 2007, was limousine. During 2007, only three transactions occurred:

  Interest capitalization begin on a qualifying asset

Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset?

  Dilemma in an ethical manner

Your colleague is infatuated with a woman whom you know to be promiscuous. Since this colleague is also a close friend, you are concerned about his/her welfare.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd